KOTA KINABALU, June 15, 2026 — The Malaysian government has urged all eligible land transport companies operating goods and public services in Sabah, Sarawak, and the Federal Territory of Labuan to register their vehicles immediately under the Subsidised Diesel Control System (SKDS) to continue receiving diesel subsidies.
The call was made during a SmartPay PETRONAS Fleet Card handover ceremony in Kepayan, Kota Kinabalu, involving transport companies that have already secured SKDS approval.
Registration for goods transport under SKDS was expanded to Sabah, Sarawak, and Labuan on May 4, 2026, while the public transport sector has been open for registration since June 2024.
Current Registration Status (as of June 14, 2026)
| Region | Companies | Vehicles |
|---|---|---|
| Sabah | 3,922 | 14,415 |
| Sarawak | 3,869 | 14,447 |
| WP Labuan | 269 | 769 |
| Total | 8,060 | 29,631 |
Registered companies will receive diesel subsidies through the fleet card system at RM2.15 per litre for goods transport and RM1.88 per litre for public transport.
The Ministry stressed that mandatory use of the SKDS fleet card will be enforced at a date to be announced soon. Companies are therefore advised to register without delay so that vehicles falling under the 33 eligible categories can continue to benefit from the subsidy.
Applications can be made through the MySubsidi portal at https://mysubsidi.kpdn.gov.my.
Purpose of SKDS Expansion
The expansion of SKDS aims to curb diesel subsidy leakages through digital monitoring and enforcement. The fleet card mechanism is designed to ensure subsidies reach only the intended beneficiaries and to prevent smuggling, diversion, and misuse — including by foreigners and undocumented immigrants.
Rising Subsidy Costs
The government revealed that it spent RM2 billion annually on diesel subsidies for Sabah and Sarawak in 2025. In 2026, costs have surged due to the global energy crisis triggered by the conflict in West Asia that began on February 28, 2026.
- January 2026: RM103 million
- February 2026: RM106 million (pre-conflict)
- March 2026: RM563 million
- April 2026: RM647 million
Total subsidy expenditure for the first four months of 2026 reached RM1.4 billion.
Government Commitment
In a statement, Datuk Armizan Mohd Ali, Minister of Domestic Trade and Cost of Living, reaffirmed the government’s commitment to delivering targeted diesel subsidies to the people and industry as a measure to mitigate rising living costs and the impact of higher goods and services prices.
He emphasised that targeted subsidy delivery, combined with stronger enforcement, is essential to manage leakage risks while maintaining support for legitimate users.
Companies in the land transport sector for goods and public services in Sabah, Sarawak, and Labuan are strongly encouraged to complete their SKDS registration as soon as possible to avoid disruption to their diesel subsidy benefits.
About The Author
